Warrior Trading Blog

5 Stocks in 5 Minutes | Arsh’s Trade Analysis


What’s up traders? It’s Arsh and I’m back again with another episode of Five Stocks in Five Minutes. Get ready to learn about some of the best technical trading opportunities in the large cap stock market. All of these trading ideas are based off strategies that I share in the Warrior Pro Course, so if you’re not already a member, make sure to sign up using coupon code Arsh30 for a 30% discount. You’ll be able to participate in my trading course, attend my weekly mentor sessions, and trade alongside me in the large cap chat room. Make sure to leave your comments and questions below and I hope you enjoy the video.

Let’s begin today’s video with a clip from one of my recent Warrior Pro mentor sessions where I provided students a detailed analysis of the large cap market prior to the interest rate cut that took place on July 31.

I personally feel that if we do get a rate cut, it’s probably in the short term going to be a sell the news event, because you have to think about it. As I just said, the market has been pricing in the rate cuts since back here. In this clip, I informed students that a 25 basis point rate cut would likely be a sell the news event for the stock market. It’s now been a few weeks and we can see that the interest rate cut did turn out to be the sell the news event we were looking for. The stock market had a very short term correction of about 6.5% from the highs, and that volatility provided us some great trading opportunities as a result. On the day of the interest rate cut, I was able to purchase some SPY put options for 28 cents and sell them as high as $1.72, for an average gain of about 300% on this trade.

Moving on, let’s go over a short trading alert I shared on Uber in my July 14 Five Stocks video. That tells me that a breakdown of this three point trendline can lead to further sell pressure in the stock. I’ll definitely be closely watching the stock to go short on a break of that level which could lead it towards the following support levels down here at $41.71, $40.70, and then $39.15. In this video, I mentioned to traders that Uber had formed a bull trap after it failed this $45 breakout, and that it could go for a breakdown below this three point trendline. Unfortunately, the original trend line I shared didn’t provide the immediate breakdown that we were looking for, which made this trading opportunity challenging, but this adjusted trendline did provide us the breakdown point that we were looking for.

We can see that once the bears took control of this bull-bear battle, and the stock broke through this multi-month consolidation, it made the move that we were looking for with incredible momentum. It managed to move all the way to the $39.15 price target that I highlighted in my original video. Congratulations if you were able to take advantage of the short trade.

Next up, let’s take a look at the CRON short trading alert that I shared in the large cap chat room. I was able to identify a bear flag pattern on the stock, so I mentioned to students to consider it for a short, below the yellow trend line in this screenshot. Based on the price action that day. This pattern implied further downside if the stock broke that trend line. The stock was able to find support so it did not retest the trend line again that day, but it did retest the trend line the next day. Once again, I shared this setup with students in the chat room to consider it for a short below the trend line.

Going back to the chart, we can see that the trend line turned out to be a very effective breakdown point for the stock. The setup was based on the bear flag breakdown strategy shared with students in the Warrior Pro course, and it’s a great example of the level of patience that might be needed when you’re waiting for a setup to trigger, considering that this day trading setup didn’t trigger until the next day.

Gold has now hit a major milestone at $1,500, and it’s getting closer to the $1,700 price target that I shared in this alert. This has been a substantial gain from $1,360 where I originally shared the long alert with students in our community, and I’m happy to say that it’s done exactly what we’ve been expecting. $1,360 turned out to be a very effective long entry because that’s where gold began to break out of a major two year long consolidation pattern, which we can see here on the daily chart. Congratulations if you’ve been able to take advantage of this huge move higher in gold, which was very predictable based on the technical analysis strategies shared in my course.

To wrap up today’s video, I have AMD on close watch for a swing trade long above $34.14. AMD has been one of the most bullish stocks on Wall Street this year and I think there’s more room for this one to run above the key $34.14 breakout level. That’s the level where the stock has topped out on five occasions now, and each additional test is only going to increase the odds that we see a breakout through that level. To keep your risk low, it’s good to trade it with a breakout or bailout mentality where you’re only holding onto the trade if it stays above the $34.14 breakout point. As for price targets, the next major levels of resistance are around $37.88 and $40. I’ll be closely watching the stock to make its move above that $34 level, so I can consider it for a long trade.

That’s all for today’s video, traders. Thanks for watching and I’ll see you in the next one.

Oh, hey, I didn’t see you there. I was just working the dream board for my next home run trade. Hopefully it comes soon. Until then, make sure you subscribe to get email alerts anytime I go live or upload new videos. Until then, happy surfing.